OSLO, Sept 11 (Reuters) – Offshore drilling contractor Seadrill is trying to purchase extra property or create a bigger participant by merging with friends, the corporate’s CEO mentioned on Wednesday.
Norwegian-born billionaire John Fredriksen misplaced the management of the corporate, as soon as the world’s largest driller by market cap, to its collectors over two debt restructurings since 2014.
Now a a lot leaner and smaller firm, New York-listed Seadrill itself is trying to purchase distressed property or gamers with “distressed stability sheets,” CEO Simon Johnson informed an investor convention in Norway.
“We aren’t going to do something loopy, we’ve confirmed our self-discipline,” he mentioned. However the amount of money the corporate has on its stability sheet, “which some take into account inefficient, provides us each a defensive buffer and a foundation for offense,” he mentioned.
“We haven’t seen the top of consolidation in (the offshore drilling market),” Johnson added.
Debt restructurings following oil market crashes in 2014 and 2020 led to a wave of consolidation within the sector, which left fewer gamers with fewer rigs, with drilling charges greater than doubling since 2021.
“We imagine that there’s room for one large consolidation, particularly provided that our prospects are additionally consolidating,” Seadrill rival Transocean’s President and Chief Working Officer Keelan Adamson informed the convention.
Johnson informed the convention Seadrill remained agnostic whether or not it comes on high in a possible merger, or is purchased by others, supplied the value is sweet.
“We wish to add a few items (drilling rigs) so we develop to 20-25 items… However we can be additionally open to being a junior companion in an integration supplied that we get the premium that displays the standard of our property,” he added.
Johnson declined to say whether or not the corporate was concerned in any negotiations on a doable merger, when requested by Reuters.
Its high three shareholders are funding funds Bybrook Capital LLP, Canyon Capital Advisors LLC and Elliott Administration Company, in response to LSEG information.
(Reporting by Nerijus Adomaitis; Modifying by Jan Harvey)
(c) Copyright Thomson Reuters 2024.
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